Sezzle | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 149.68 M

Revenue: As of FY2026 Q2, the actual value is USD 149.68 M, beating the estimate of USD 135.41 M.

EPS: As of FY2026 Q2, the actual value is USD 1.17, beating the estimate of USD 1.024.

EBIT: As of FY2026 Q2, the actual value is USD 54.96 M.

Operational Metrics

Gross Merchandise Volume (GMV)

Sezzle Inc.’s GMV grew 37.9% year-over-year (YoY) to $1.3 billion in Q2 2026. The average purchase frequency reached a company high of 7.2x, up from 6.1x in Q2 2025.

Total Revenue

Total Revenue climbed 51.7% YoY to $149.7 million in Q2 2026, setting a new quarterly high. Total Revenue as a percentage of GMV increased to 11.7% from 10.6% in Q2 2025.

Active Subscribers

Active Subscribers surged 76.4% YoY to 854,000, marking the largest YoY subscriber gain in Sezzle Inc.’s history. Monthly On-Demand & Subscribers (MODS) totaled 982,000 as of June 30, 2026, an increase of 31.3% YoY.

Total Operating Expenses

Total Operating Expenses rose 51.3% YoY to $94.7 million. Operating Expenses held steady at 63.3% of Total Revenue YoY, while rising 0.6 percentage points as a share of GMV to 7.4%.

Transaction Related Costs

Transaction Related Costs totaled $54.6 million, up 42.2% YoY. These costs increased 0.2 percentage points YoY to 4.3% of GMV. The Provision for Credit Losses was 2.4% of GMV. Net Interest Expense declined 12 basis points YoY due to a lower cost of funds.

Operating Income

Operating Income increased 52.3% YoY to $55.0 million. Operating Income remained relatively flat YoY at 36.7% of Total Revenue, and reached 4.3% of GMV, up from 3.9% in Q2 2025.

Total Revenue Less Transaction Related Costs

This metric improved 57.7% YoY to $95.1 million. It represented 63.5% of Total Revenue, up 2.4 percentage points YoY, and 7.4% of GMV, compared to 6.5% in Q2 2025.

Non-Transaction Related Operating Expenses

Non-Transaction Related Operating Expenses increased 56.4% YoY to $43.4 million, driven by a rise in marketing expense to $19.4 million from $8.8 million in Q2 2025. As a percentage of Total Revenue, these expenses rose 0.9 percentage points YoY to 29.0%. Corporate Strategic Project Costs were $0.4 million in the quarter.

Net Income

Net Income jumped 47.7% YoY to $40.8 million. The Net Income Margin declined 0.8 percentage points YoY to 27.2%.

Adjusted Net Income

Adjusted Net Income reached $39.3 million, an increase of 58.4% YoY, and was equal to 26.2% of Total Revenue.

Adjusted EBITDA

Adjusted EBITDA reached $58.0 million, up 51.3% YoY. The Adjusted EBITDA Margin remained largely unchanged YoY at 38.8% of Total Revenue.

Balance Sheet and Liquidity

Cash, Cash Equivalents, and Restricted Cash

As of June 30, 2026, Sezzle Inc. had $112.0 million in cash, cash equivalents, and restricted cash, with $32.3 million of this amount being restricted.

Line of Credit

Sezzle Inc. had $123.5 million outstanding on its $300.0 million credit facility at quarter-end. A new three-year, $300.0 million receivables funding facility was announced on May 11, 2026, replacing the prior $225.0 million facility and reducing the interest spread by nearly 290 basis points to SOFR plus 3.86%.

Share Repurchases

During Q2 2026, Sezzle Inc. repurchased $3.1 million of common stock, bringing first-half 2026 repurchases to $28.0 million under its $100.0 million share repurchase program.

Cash Flow (Six Months Ended June 30)

Operating Activities Cash Flow

Net cash provided from operating activities was $141.226 million for the six months ended June 30, 2026, compared to $75.536 million for the same period in 2025.

Investing Activities Cash Flow

Net cash used for investing activities was - $80.260 million for the six months ended June 30, 2026, compared to - $54.342 million for the same period in 2025.

Financing Activities Cash Flow

Net cash used for financing activities was - $51.090 million for the six months ended June 30, 2026, compared to - $809 thousand for the same period in 2025.

Outlook / Guidance

Sezzle Inc. raised its FY2026 guidance, expecting Total Revenue Growth to reach the high end of the prior range at 35%. Adjusted Net Income is projected to increase to $185.0 million from the previous guidance of $180.0 million. Adjusted Net Income per Diluted Share is now guided to $5.25, up from $5.10.